HomeMy WebLinkAboutItem 4 - 2021-2023 Financial Plan Goal Setting Budget Process Co
PLANNING COMMISSION AGENDA REPORT
SUBJECT: 2021-2023 Planning Commission Goal-Setting and the Financial Plan / Budget Process.
Review the 2019-2021 Planning Commission (PC) goals, take public testimony, and identify PC
goals and work program items for the 2021-2023 Financial Plan.
FROM: Tyler Corey, Principal Planner
DISCUSSION
Bi-annually the City adopts a budget and financial plan. To prepare for the budget process, all City
departments and advisory bodies are asked to identify their goals and major work programs for the
next two years. The City Council then uses this information, along with public comment and other
input, to set community priorities and to allocate resources to accomplish the identified Major City
Goals.
Input from City advisory bodies is specifically solicited, because the advisory body members are
recognized as representatives of the community, that are committed to the long-term best interest of
the City and its residents. Advisory body members are in tune with the “pulse” of the community in
terms of their specific area of interest. Other key points as we embark on this goal-setting process are:
1.The Council is seeking advisory body input focused on the purview area of the advisory body
and is also interested in input on other issues that are important to the community.
2.Advisory body input is highly valued by the Council and City staff.
3.Goals can include completing projects from a previous work program.
4.Identifying priorities implies recommending fewer rather than more goals to the Council.
Advisory bodies are encouraged to only recommend activities that can reasonably be
accomplished during a two-year financial plan cycle.
Objective
This is a public process and citizens participation is welcomed. The results of this process include a
list of PC goals and implementation programs or projects that will be forwarded to the City Council
for consideration as part of the 2021-2023 financial planning and budget cycle.
GOAL SETTING
Current Recommended Goals: 2019 - 2021
The City last revised its goals and work program starting in September 2019 in connection with the
preparation of the 2019-2021 Financial Plan and budget cycle. The PC prioritized the following goals
based on the evaluation of the completion status for the 2017-19 Major City Goals; community need,
and input received over the past 2 years; special and urgent conditions that need to be addressed; and
the availability of City resources to accomplish the identified goals and work programs within the
financial plan timeframe. Below are the goals that the PC recommended during the 2019-2021 budget
cycle:
Meeting Date: October 28, 2020
Item Number: 4
Time Estimate: 45 Minutes
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2021-2023 Financial Plan Goal Setting Budget Process
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1. Land Use: Implementation of the Downtown Concept Plan and Revisit Special Focus Areas
Implement the Mission Plaza improvements as identified in the Downtown Concept Plan.
Revisit the Special Focus Area development guidelines for the Foothill Boulevard/Santa Rosa
Area and Upper Monterey to establish detailed design guidelines that enhance neighborhood
integrity and the diverse community character.
2. Housing: Increase Affordable and Workforce Housing Supply
Emphasize affordable housing programs, encourage flexible use and non-traditional housing
product types to facilitate development of workforce housing. Review existing regulations to
identify cost and time saving measures to promote the development of accessory dwelling
units, while maintaining the owner occupancy requirement to protect neighborhood
compatibility and wellness.
3. Sustainability: Reduce GHG Emissions by Reducing VMT and Improving Residential
Energy Efficiency of Pre-1990 Housing Stock
Update and implement the Climate Action Plan with emphasis on: 1) encouraging project
design that promotes accessible, convenient and safe pedestrian, bicycle and transit access
that reduces project generated vehicle miles traveled by 20-40% below average; 2) developing
standards that support infrastructure improvements for alternative transportation and electric
vehicles; and 3) identify and implement financial incentives for improving energy efficiency
in pre-1990 housing stock.
4. Multi-Modal Circulation: Improve Walkability and Transit
Implement the Multi-Modal objectives identified in the LUCE and the Downtown Concept
Plan by encouraging in-fill development to include non-automobile alternatives. Conduct a
walkable community survey in major neighborhoods to inform the development of the Active
Transportation Plan, and to identify improvements that would encourage and support
pedestrian activities for people with varying degrees of mobility. Implement the Short-Range
Transit Plan to improve transit ridership by exploring operational improvements that could
reduce run times to less than 20 minutes along routes that serve densely populated areas.
Future Recommended Goals: 2021-2023
As the City begins the 2021-2023 financial planning and budget cycle, the PC has the opportunity to
review their current goals, update them as necessary, and identify any new goals, programs and/or
projects.
Goal Setting Process
Staff will present a brief slide show that overviews the City’s budget process and the role of the
advisory bodies. The Commission should then review their 2019-2021 goals, followed by discussion
and consideration of recommended goals, programs, and projects to be included in the 2021-2023
Financial Plan. Typically, during goal setting sessions, the PC has followed the steps below.
Goal-setting Steps:
1. Review and understand goal-setting and City Financial Plan/Budget Process;
2. Evaluate previous goals and work programs. Determine which goals and programs were
accomplished and can be deleted, or which ones are no longer needed;
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2021-2023 Financial Plan Goal Setting Budget Process
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3. Determine which goals and/or programs have not been completed and should be carried
forward;
4. Identify new goals or programs for possible inclusion in the work program;
5. Prioritize the goals and programs, based on the PC’s adopted goals and General Plan goals,
community needs and input, opportunities, or special or urgent conditions; and
6. Identify activities which may require additional resources to accomplish. This may include
references to possible community partnerships or outside funding sources.
NEXT STEPS
The Commission should take public testimony and identify Commission goals and work program
items for the 2021-2023 Financial Plan. Advisory body goals are due by December 15th, 2020. The
Council will receive the final report with all advisory body recommendations in late December 2020
before they begin the community goal-setting process.
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Advisory Bodies
2021-23 Financial Plan Goal
Setting Parameters
1
2019-21 Financial Plan
Guided by the Fiscal Health Response Plan–the purpose of the Plan is to establish a
framework to respond to the long-term fiscal impacts of the significant increases in
required pension contributions to the CalPERS retirement system over three years.
2
Year 1
2018-19
Year 2
2019-20
Year 3
2020-21
Three-Year Plan
San Luis Obispo is committed to…
Good Fiscal
Management
Public
Engagement
Quality
Services
4Considerations when setting goals:
Changes in
Economic
Conditions
Pending Diablo
Closure
Further CalPERS
Adjustments
Long-term
Environmental &
Fiscal
Sustainability
COVID19 Diversity, Equity,
Inclusion (DEI)
Assumptions
Phased reopening
Schools return in Fall 2020
Impact on most industries
Recessionary trends
“U” Shaped recovery
“How much of a guessing game is a wild guessing game right now as there is no historical precedent for the current crisis and little good data
as of yet.”
–Beacon Economics
General Fund Long Term Forecast 5
*Based on unaudited actuals
Based on 2020-21 Supplemental Budget forecast
Fiscal Health Contingency Plan Activated –Hiring, purchasing, and travel chills
to mitigate revenue shortfalls.
Healthy Reserve Levels –The City has multiple reserves in preparation for future
unknowns and cash flow preservation.
Where are we now?
6
2019-20 Results: Realized savings from additional employee contributions to
CalPERS and hiring new staff under the PEPRA retirement plan limiting the impact
of revenue shortfall.
Fiscal Health Response Plan: in effect through 2020-21
Unfunded Liability Payments as part of
FHRP
FY 18-19 FY 19-20 FY 20-21
CalPERS Downpayments $4.2 mil -Paid $4.2 mil* -Unpaid –in
Undesignated Fund Balance
$3.0 mil –payment to
be determined
115 Pension Trust Fund $1.4 mil –In Reserve $2.0 –allocation to be
determined
*From 2018-19 Fund Balance
7City Council Adoption of ONE Unified City Goal (June 2, 2020):
Economic Stability, Recovery, and Resiliency
Link to 20-21
Supplemental Budget
with goal details (pg. 17)
July 2020
Council approved creation of a Diversity,
Equity, and Inclusion Task Force to provide
guidance and a foundation for creating a
potential 21-23 DE&I focused Major City
Goal
Goal Setting Parameters
1.Consider uncertainty regarding the long-term impacts from COVID19
2.Consider increased pressure to fund infrastructure maintenance
3.Advancing Fiscal Health Response Plan objectives
4.New projects and services will require trade-offs with current core
services (Revenue generating new services excluded.)
5.Goal setting through the lenses of Diversity, Equity, and Inclusivity
8
Goal-Setting & the Budget Process
February 2021
*November 17, 2020 “Setting the Stage” Workshop
**Date TBD “Budget Foundation” Workshop
2021-23 Financial Plan
April 2021
June 2021
June 2021
Community
Involvement
(format TBD due
to COVID)
The proposed Financial Plan Calendar will be presented to Council on 10/20/20
QUESTIONS?
10
We are available to talk to you and your advisory body and respond to
questions.
Natalie Harnett Principal Budget Analyst nharnett@slocity.org
Brigitte Elke Finance Director belke@slocity.org